At the last session, the House of Peoples of the Parliamentary Assembly of Bosnia and Herzegovina unanimously adopted the Bill on Amendments to the Law on Value Added Tax. As an explanation to the law states a vast number of companies in BiH involved in the production or trade of food products have been discouraged from donating food in larger quantities, since donating food has been creating an additional financial obligation to pay VAT. Therefore, large amounts of food have been destroyed instead of providing a meal for vulnerable categories of the population. Translated into the amount of food per day, that's more than 700,000 meals thrown away on a daily basis.
Abolishment of VAT on donated food appears beneficial for both socially responsible VAT payers and disadvantaged groups.
The law has been elaborated in full cooperation with the Administration for Indirect Taxation of Bosnia and Herzegovina. It fulfills the UN obligation for sustainable development, which foresees a 50 percent reduction in wasted food by 2030. The Directorate for European Integration gives a positive opinion on the proposed law. Although there is no European directive regulating this area, a significant number of European countries have a similar law.
It is the Regular Assembly of the Parliament to further define the guidelines on the Draft Law on Amendments to the Law on Value Added Tax to avoid abuses. This initiative is part of the project Nobody hungry, nobody alone, which was launched in Bosnia at the beginning of 2023 due to rising prices for basic commodities and high rates of inflation.
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